In the Supreme court of the state of new York by a group of investors filed a lawsuit against cryptocurrency exchanges Huobi, to its us unit HBUS, Fund Elastos Foundation and the team of creators of the cryptocurrency Elastos (ELA), in which they are accused of violation of the securities act in conducting the ICO Elastos in 2018.

The plaintiffs argue that the defendants had to register the tokens in the Commission on securities and exchange Commission (SEC) as securities, but “blatantly ignored” the requirements of the law in this part, and in part of the company registration as a broker-dealer.

In Elastos statements plaintiffs believe to be groundless and ready to court.

Recall that during the ICO team Elastos raised $94 million investment. It was assumed that investors will block your tokens for 3 years, after which they will receive a bonus of 6%, but the startup has cancelled this scheme.